Vietnam Today

Retail sales growth higher than four-year average

Retail sales grew significantly in the first seven months of 2015 and exhibited seven notable points.

Firstly, growth was high again. Excluding the 0.86 per cent increase in prices, total sales rose nearly 9 per cent, higher than the average over the last four years.

Secondly, such growth indicates that future growth may exceed 9.5 per cent, more than one and a half times the average annual rate in the 2011-2014 period.

Thirdly, the ratio between the growth rate of total retail sales and the growth of GDP has continued to increase over the years, from 0.74 times in 2011 to 1.5 times in the first seven months of 2015.

Fourthly, total retail sales in the non-State sector accounted for the largest proportion, with 85.6 per cent, and increased significantly, while the State sector accounted for just 11.1 per cent.

The foreign-invested sector accounted for a low proportion of total retail sales, with 3.3 per cent, but recorded handsome growth and is trending upwards.

Fifthly, the goods retail sector accounted for 75.9 per cent and grew the most, at 10.6 per cent. Accommodation and restaurants began to gain a higher proportion, with 11.7 per cent, but growth was only 7.2 per cent.

Sixthly, the growth in final consumption in first six months was 8.7 per cent, contributing 7.74 percentage points to the growth of GDP.

Finally, the increase in total retail sales contributed to improving consumers’ lives, reduced inventories, and increased consumption, production growth and economic growth. Despite the increase in total retail sales, aggregate demand remains weak, leading to a low inflation rate.